SEBI: Country's top 100 companies will have to do this work from today; an initiative to keep the market unaffected by rumours begins
SEBI: Under SEBI's new rule, from today, the top 100 companies will have to confirm, deny, or clarify any event or information reported in the mainstream media that is not normal in nature.
Starting on Saturday, rumours about the market that the mainstream media have reported about the top 100 listed companies in the nation based on market capitalization must be confirmed or refuted. Beginning on December 1, this order will also apply to the top 250 companies.
With effect from today, the top 100 companies will be required by SEBI's new rule to verify, refute, or provide an explanation for any event or information that is reported in the mainstream media and is not typical. The objective of SEBI's rumour verification framework is to ensure equity for all investors by removing price volatility from the average market price computation for corporate actions.
Market rumors can cause significant volatility in stock prices, often leading to transactions that do not reflect the true value of a company. These rumors may be related to management changes, order cancellations, or financial health.
